Economic activity that is above potential output signals that potential output is about to increase occurs near the trough, rather than the peak, of a business cycle is not possible results from an economic shock to which the economy has yet to adjust fully none of the above

Economic activity that is above potential output signals that potential output is about to increase occurs near the trough, rather than the peak, of a business cycle is not possible results from an economic shock to which the economy has yet to adjust fully none of the above

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 9E

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Question

Economic activity that is above potential output
signals that potential output is about to increase
occurs near the trough, rather than the peak, of a business cycle
is not possible
results from an economic shock to which the economy has yet to adjust fully
none of the above

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